WA Post a Bargain - Perth 2018

Here's a bargain in Perth

Dalkeith mansion once owned by Alan Bond hits the market with $50m+ price hopes

 

What do people feel is the best strategy in Perth right now for a 3-5 year hold ( will be PPoR )
- Older house on big block (600-700 sqm ) in hammy hil
- Older house on smaller block ( 400sqm or so ) in Hilton that needs some minor reno
- Villa/duplex 3 bedder in scarbs, palmyra, mosman park areas

Open to others ideas of strategies.....needs to be west of hwy and less than 20km to cbd

Just interested in peoples thoughts

 

West of freeway?

If you go with option 1 you’d probably have the biggest chance of growth however be wary that some larger blocks, especially if developable, will ask for a higher price from the outset

Simple rule of thumb is that land appreciates and buildings depreciate so try and go as basic on the house as possible to maximise growth.

This is where delayed gratification comes in. Sacrifice some home comforts will see you maximise your tax free asset.

 

Yes fwy sorry! I too am leaning towards option 1 just need to spend some time in hamilton hill to see if I could live there. Is option 1 still the best strategy if we ourselves aren't prepared to develop it?

 

Yes you don't have to develop it but as I said just make sure that the developability price per sqm isn't already factored in.

Don't rule out some area east of Freeway - there are some areas within excellent school zones which large blocks will appreciate well.

 

I don't know if you would strictly speaking call this a "bargain" since I am not sure it is under-priced, but it seems like an amazing block at a very fair price.

700sqm retain and build block with great access to the back and a beautifully rectangular block (yes I called the rectangle beautiful), amazing location (correct me if I am wrong), so close to Inglewood that you can smell it from there, short walk to 2 train stations, easy access to main road, 5.5km from the CBD.

When looking through sold listings a few months ago, I didn't take notice of prices this far south in Bayswater since it is a touch out of my expected budget, but I recall that the lower half of Bayswater started around 600's, so for such a great block with amazing potential and location, 600k seems awesome. I think if I was ready to buy now, I'd have to be willing to stretch to this one way or another just because it seems so fantastic.

2A The Strand Bayswater WA 6053 - House for Sale #127396422 - realestate.com.au

Curious to see what others think of this property generally, and also specifically what price you think it will go for?

 

Hi @Anthony Brew , I think you did a much better job than the RE agent in advertising this one! I saw his ad 10 mins ago and deleted it straightaway. Saw you post and it made me check the property again and again!

 

The slope worried me a bit.

 

When I saw it last week I didn't think much of it as I assumed it was half a block due to it's number being 2A. Then I realised that it was a full sized block.

I've run some numbers on it. It's not brilliant but it's not terrible. The main area of risk for me was how much money to put in for retaining that slope and how that would affect design.

Plus the fact that it's technically just under the 700sqm needed. The advert says 698 but it's 696sqm

 

I don't even read the ad. Firstly I'm buying the location, land, and potential - the house is secondary only if the land stacks up so I don't usually even get to the house most of the time. And secondly their write up is done by a real estate agent, so their words are worthless anyway.

I can't remember which site had the elevation of a property. I thought it was this one but looks different to what I recall. Anyway, this one has something mentioning it here when you click on "elevation" and select some areas on the property and says it is 1m which I would think isn't much. I don't know how accurate that site is though.

Edit: yea just saw the pics from the front again and you're right, it's pretty crazy. I guess that's why the price seems so 'reasonable' =/ oh wells

 

Thanks for the reply Westminster.

Edit: just had a look again at the front pic and noticed the slope is enormous, so disregard everything below. Jumped the gun there when the block looked so good on the map.


Yeah for a develop and sell now site, I can see it not being anything special, but I think for a retain and build and long term (decade/s+) hold, I think the long term growth from the location might be worth the possibly lesser value adding you can get early on. I am not sure if this is wrong, but it makes sense in my head. Appreciate your thoughts or criticism of this.

Do you really think there would be a problem with 4sqm short? Are they really that strict?

And is it possible for a quick napkin estimate on the cost of retaining the slope? And maybe a point or two of how the design would possibly be affected?

 

I was chatting my buyer's agent in Perth yesterday who also does renovations/developments for clients (about to start one on my place too). He was telling me about a place he bought for a client late last year where they are subdividing the lot and selling off the second and renovating the house. They'll be completely in and out within 6 months and are creating a third bedroom in the existing house by combining the living and dining areas.

They used a conservative $400k in their feasibility study for the new lot and an inferior lot just sold about 150m away for $429k so they'll exceed their initial profit estimates very comfortably. With the reno and the addition of the bedroom they now expect to exceed $175k profit for the client including all fees to acquire the site and manage the project. All in 6 months! I was astounded to be honest and it shows there are still great bargains to be had in Perth.

 

Great result.

What was the total cost of the project?

 

I think he said just over $800k including the purchase which was mid-$600k.

 

Surely any large block is going to have the developability price per sqm already factored in to selling price though?

 

Careful with that part of Bayswater where there can be additional preservation rules for character homes. For a bit more money can scoop a triplex block on ~1000m2.

 

Thanks for the info.
Interesting to hear that there are triplex blocks in such a good location (assuming you did mean same location and not below the river).
I wonder how likely it would be to find a triplex block where you can retain the existing with enough space to comfortably fit 2 more. It would be make my day (well, my decade!) to be able to put a second, and then have the ability of putting a third later on also when finances permit, without having to demo the original and have them all in a location like that. I might be dreaming though. Thanks for letting me know though, will keep a lookout. Also thanks for mentioning the preservation issue.

 

It would be unusual to find something like that in that area.

 

On a 1000m2 block you can always build the very last lot and leave the existing house on the first two lots(assuming a triplex). Down the track, can demolish the ****** front house and put 2 on them.

I came across this a few weeks ago, not a bad block or location. Don't trust the listing about retain and build, check with the town planner or some other design team to make sure. Worst case you can always do what I said above. Have fun.

60 Moojebing Street Bayswater WA 6053 - House for Sale #127346374 - realestate.com.au

EDIT: I wouldn't pay what they are asking for though.

 

That's a very different part of Bayswater. Very very high risk of clay etc

@Anthony Brew a site in Maylands has also come on market that claims can be retain and build 2 Maylands address available on request - House for Sale #127577918 - realestate.com.au